Suppose you are a very risk-averse investor and therefore you decide to purchase a 1-year U.S. Treasury security. Because this Treasury bill is a short-term security it does not pay any coupons but rather it is sold at a discount. If the Treasury bill matures to a face value of $1,000,000 exactly one year from today (so FV = $100,000) in 1-year, what price should you pay today if the interest rate (or discount rate) is 8 percent compounded quarterly. Note that you are finding the PV of this security today.

Todays Price (PV) =